Doing Business in Japan Slideshow
- 2. Welcome Norfolk Chamber of Commerce Tweet us @Norfolkchamber @Norfolkexport Sponsored by:
- 3. Tweet us @Norfolkchamber @Norfolkexport Housekeeping • Facilities are to the left of reception • No fire alarms scheduled Sponsored by:
- 4. Daisaku Yukita & Thomas Taylor Tweet us @Norfolkchamber @Norfolkexport
- 5. Business Opportunities in Japan 28 of March, 2017 Japan External Trade Organization
- 6. 1. Allures of the Japanese Market Copyright (C) 2017 JETRO. All rights reserved. 6 2. Structural Reforms 3. Doing business in Japan 4. JETRO Support
- 7. 7 Copyright (C) 2017 JETRO. All rights reserved. Business friendly Infrastructure Comfortable Living Innovation Hub Sophisticated Market 1. Allures of Japan as a destination
- 8. 8 Copyright (C) 2017 JETRO. All rights reserved. International comparison of Japanese regional GDP in Japan (nominal, FY2013) (Unit $1 billion) Kanto region 2,018.2 Russia 2,096.8 Hokkaido/Tohoku region 591.9 Sweden 579.5 Chubu region 779.8 Switzerland 685.4 Chugoku region 279.5 Finland 268.2 Kyushu region 476.8 Austria 428.3 Kansai region 792.6 Switzerland 685.4 Shikoku region 135.9 Hungary 133.4 Source: Cabinet Office, “Annual Report on Prefectural Accounts for FY2013" (issued in FY2016) 1. Allures of Japan as a destination -Sophisticated Market
- 9. Copyright (C) 2017 JETRO. All rights reserved. 9 Source: Ministry of Economy Trade and Industry , “Global Niche Top Companies Selection 100” 1. Allures of Japan as a destination -Top global niche companies throughout Japan
- 10. 10 Source: Created from Ministry of Internal Affairs and Communication, “Survey Result on Science and Technology Indicators 2014 ” Date source: OECD “Main Science and Technology Indicators, ” etc. Rank Country Percentage of GDP (%) 1 Japan 3.75 2 German 2.98 3 U.S. 2.79 Rank Country Number of researchers per 10,000 people 1 Japan 52.0 2 Canada 45.6 3 German 42.5 Research funding percentage of GDP (G8 comparison) Number of researchers per 10,000 people (G8 comparison) Science and technology related research is conducted spiritedly in Japan. “Research funding as a percentage of GDP” and “Number of researchers per 10,000 people” are among the largest in the world. Copyright (C) 2017 JETRO. All rights reserved. 4th - France (2.29%), 5th - UK (1.73%), 6th - Canada(1.69%), 7th - Italy (1.27%), 8th - Russia (1.12%) 4th - US (40.2), 5th - UK (39.7), 6th - France(38.3), 7th - Russia (31.0), 8th - Italy (12.7) 1. Allures of Japan as a destination -Innovation Hub
- 11. Copyright (C) 2017 JETRO. All rights reserved. Source: World Economic Forum, “The Global Competitiveness Report 2014-2015” Source: Ministry of Economy, Trade, and Industry(METI), “Survey on Attitudes of Foreign Companies toward Direct Investment in Japan Report 2014” Easy environment for business Foreign companies validate Japan’s infrastructure 11 1. Allures of Japan as a destination -Business Friendly Infrastructure
- 12. RANK Source: MONOCLE, UK 12 1. Tokyo 2. Vienna 3. Berlin 4. Melbourne 5. Sydney 6. Stockholm 7. Vancouver 8. Helsinki ： 12.Fukuoka 14.Kyoto Copyright (C) 2017 JETRO. All rights reserved. Most livable Japanese cities as chosen by the world 1. Allures of Japan as a destination -Comfortable Living
- 13. Copyright (C) 2017 JETRO. All rights reserved. 13 Since the launch of the Abe administration in December 2012, stock prices, Tankan DI, and unemployment data, have all improved. Stock prices (Nikkei Stock Average) CPI growth rate (Less food (except alcohol) and energy, year-on-year ) Unemployment rate GDP (Real GDP (seasonally adjusted)) Business Conditions (Tankan, current situation, manufactures) 19,378.93 yen 10 Feb 2017 (Closing price) -1.2% 2010 ＋0.3% 2016 4.3％ 2012 average Large firms -3 Medium-sized -5 SMEs -12 Survey in Dec 2012 Large firms 10 Medium-sized 6 SMEs 1 Survey in Dec 2016 10,230.36yen Dec. 26, 2012 (Launch of the current administration 498.8 Trillion yen 2012 (Before the launch of the current administration) 521.8 Trillion yen 2016 (Calendar year, 2/13) 2.9% 2016 Q4 (Oct – Dec) 2. Improving Economic Indexes Under “Abenomics”
- 14. Copyright (C) 2017 JETRO. All rights reserved. 14 ■Corporate Tax Reform FY2015 32.11％ （year-on-year -2.51％） FY2016～2017 29.97％ （ year-on-year -2.14％） FY2018 29.74％ （ year-on-year -0.23％） Reduce corporate tax rate down to a range of the twenties in FY 2016 ahead of previous plan. Source: FY2016 Tax Reform (Main Points) lower the rate to 20's% (FY) 34.62% 32.11% 29.97% 29.74% 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014 2015 2016~17 2018 2. Structural Reform -Making Japan the most business friendly country in the world
- 15. 15 Copyright (C) 2017 JETRO. All rights reserved. Opening up the electricity market Various reforms for Tourism field Regulatory reform of medicine and medical equipment 2. Structural Reform - Making Japan the most business friendly country in the world
- 16. Copyright (C) 2017 JETRO. All rights reserved. 16 The number of foreign visitors to Japan in 2016 was 24.04 million, all-time high. Their consumption was 3.7 trillion yen, up 7.8% from the previous year. Source：Japan National Tourism Organization http://www.mlit.go.jp/kankocho/siryou/toukei/syouhityousa.html Foreign visitor arrivals and their consumption amount (Million people） （Trillion Yen） By 2020 40 million visitors, 8 trillion yen 2. Foreign Visitor Arrivals and their Consumption Amount
- 17. Copyright (C) 2017 JETRO. All rights reserved. 17 ■Huge business opportunities are expected in many areas alongside the Tokyo Olympics & Paralympics in 2020. ■Estimated economic effects are 3 trillion to 21 trillion yen (US$ 30-210 B). ■In addition to the budget of “The Tokyo Organizing Committee of the Olympics & Paralympics Games(TOCOG)”, investment in the private sectors can be expected as direct economic effects. ■Besides the large amount of capital investment such as construction of competition venues, a wide range of demand for procurement will emerge (e.g. information systems, transport, security). ■In Derived demands are also expected in various industries in the medium to long-term. • Government initiative for promoting innovation • Derived demand by the visits of Olympics & Paralympics families and tourists • Expansion of household consumption 2. Tokyo Olympics & Paralympics in 2020
- 18. Copyright (C) 2017 JETRO. All rights reserved. 18 • JETRO conducted the “Survey on Japan’s Investment Climate” to foreign-affiliated companies in Japan (June – July 2016) • More than 40% of the companies are feeling improvement in the business climate Do you feel that the Japanese business climate has become better? Business plans in Japan (within the next 5 years) n=195 (+７.7% from 2015) 2015 Survey 2015 Survey 2016 Survey 2016 Survey 3. Doing Business in Japan
- 19. Copyright (C) 2017 JETRO. All rights reserved. 19 Office rent 2015 Housing rent for expatriates 2015 3. Comparison of Cost between Asian Cities
- 20. Copyright (C) 2017 JETRO. All rights reserved. 20 Managers (Department Chief Level ) Salary 2015 Comparison of Annual Salary among Major OECD Countries (2014) 3. Comparison of Cost between Asian Cities
- 21. • Understanding a competitive market and Japanese business practices 3. Challenges Companies Face • Increasing your level of customer support • Hiring/Recruiting employees 21
- 22. • Develop trust with Japanese customers and partners 3. Keys to success in Japan • Differentiate your product/service • Make a commitment • Hire a native/someone with Japan experience • Use JETRO 22
- 23. • Best way to be in close contact with customers, partners, and distributors 3. Advantages of Having an Office • Allows for enhanced customer service leading to a reputation of dependability and follow-on sales • Get indispensable intelligence on market trends and new opportunities • Symbolizes proof of commitment internally and externally 23
- 24. USA 30% (369) China 10% (127) Germany 9% (107) Korea 7% (84) UK 6% (76) France 5% (64) Australia 3% (44) Shingapore 3% (38) Taiwan 3% (38) Hong Kong 3% (34) Others 21% (264) (FY2003-2015) JETRO Supported 14,000 Successful cases by country over 24 Copyright (C) 2017 JETRO. All rights reserved. projects Successful cases Changes in the ratio of regions 1,400 Foreign companies’ startups （～FY2014） North America Europe Asia 40% 27% 33% 32% 16% 39% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (FY) 4. Investment Project Supported by JETRO
- 25. Conference room 4. JETRO Support 25 Copyright (C) 2017JETRO. All rights reserved.
- 26. Talk to JETRO First! Copyright (C) 2017 JETRO. All rights reserved. 26 This document is owned by JETRO. All of the content in this document, including, but not limited to, still images, text, pictorial works, designs and logos, is owned or licensed by JETRO. This document shall not be reproduced or reprinted on any medium or registered on any search system in whole or part by any means, without prior permission of JETRO. Although JETRO makes its best efforts to ensure the accuracy of the information contained in this document, JETRO does not take any responsibility regarding losses derived from the information contained in this document. Japan External Trade Organization (JETRO) London office Midcity Place 71 high Holborn, London, WC1V 6AL UK Tel. +44 (0)20 7421 8300 Email: ldn_invest@jetro.go.jp
- 27. Tom Bool & Shohei Yamaguchi Tweet us @Norfolkchamber @Norfolkexport
- 28. A beginner’s guide to surviving a Japanese meeting
- 29. Going…
- 30. …beyond…
- 32. Japanese meetings 101 The basics Respect and hierarchy Business cards Bowing Gifts Dress and presentation
- 33. The basics Avoid excessive eye contact “Hai = Yes” – but not always Be wary of using first names Don’t smoke in public Mobile phone can not be used on public transport
- 34. Respecting the hierarchy Systematic, but inflexible Never cause a superior to lose face Wait to be seated – position matters Rank is relevant to everything in Japan
- 35. Taxi rules Scenario: You, your client, your client’s boss and your client’s assistant are taking a taxi. Who sits where?
- 36. Taxi rules client’s bossclient client’s assistantyou
- 37. Business cards – the full story Business cards are precious Handing or receiving anything with one hand is considered as rude Opportunity to ask how a name should pronounced Card must be clean and unbent Never write on or mark a card Prepare a business card case Presented with a bow
- 38. Give business cards with 2 hands Be ultra polite Bowing Giving Gifts Bowing like a boss – put your hands away! Eshaku informal bow for people of equal rank 15° Keirei “respect” bow for your boss or in- laws 30 – 45° Saikeirei “deeply reverent” profound respect or regret. Use with caution. 45 – 70°
- 39. Gifts As a visitor, you won’t get a gift Do not give gifts in public sector All about the presentation! Around 20-30 pounds per company Snacks that can be consumed by everyone in office Don’t expect them to open in front of you Remember to use 2 hands
- 40. Saying thank you
- 41. Domo Arigatou Arigatou gozaimasu Domo arigatou gozaimasu Least formal Most formal Saying thank you
- 42. How to dress Pretty similar to UK Wear a suit – conservative colours Minimal accessories for women Tattoos MUST be covered in public if at all possible
- 43. Restaurants Be prepared to drink Sake and eat sushi Kanpai = cheers Itadakimasu = bon appetit A foreign visitor will rarely be expected to pay for dinner No need to tip in Japan
- 44. Table manners – Chopsticks Expect to use them Practice before you go Try not to: Lick your chopsticks Tap your chopsticks together, or against anything Grab them in your fist Hover and wave them around
- 47. Jeff Evans Trade Director Tweet us @Norfolkchamber @Norfolkexport
- 48. Japan Managing Risk and the financing options available Jeff Evans, Trade Director 28 March 2017
- 49. • Barclays has over 250 Trade & Working Capital Product experts who can help you with both domestic and international trade, including your importing and exporting needs • Their role is to understand your business cycle, then lend you the benefit of their experience, providing support and funding options • During the last twelve months we have supported over 7,100 Barclays Corporate clients with international Trade and Sales Finance products¹ • We also work in partnership with key industry bodies - such as the Department for International Trade (DIT) and UK Export Finance (UKEF) - to ensure that our clients have access to the support that they need to succeed • In 2016 we signed an agreement with DIT to support UK exporting businesses through 7 key priorities • The Trade team are proud that Barclays was named ‘Best Trade Finance Bank in the UK’ at the GTR Leaders in Trade 2015 awards Supporting UK ExportersThe Government’s target to increase the number of UK companies exporting by 15,000 in the next five years reflects how crucial exporting is to both UK businesses and the UK economy. At Barclays, we are committed to working with the Government to support UK exporters, as evidenced through our Memorandum of Understanding with DIT (formerly UKTI). ¹ Barclays, Q3 2016 49 Supporting UK Exporters
- 50. Goods 55% Servic es 45% 2016 UK Exports 2012 2016 CAGR* % Imports £536.5bn £580.6bn 1.6% Exports £499.1bn £544.5bn 1.8% 2012 2016 CAGR* % Imports £412.5bn £435.5bn 1.1% Exports £301.6bn £301.4bn 0.0% % of Total Exports 60% 55% Source: ONS UK Trade, Jan 2017 UK Trade in Goods and Services Total Trade *CAGR (Compound Annual Growth rate) *CAGR (Compound Annual Growth rate) 50 Supporting UK Exporters 2012 2016 CAGR* % Imports £123.9bn £145.1bn 3.2% Exports £197.5bn £243.1bn 4.2% % of Total Exports 40% 45% Trade in Services Trade in Goods *CAGR (Compound Annual Growth rate) 2016 UK Imports Goods 75% Service s 25%
- 51. • The UK’s top 15 import sources, much like its export destinations, are dominated by European countries – with Europe representing 9 of the top 15 importers • Germany has consistently remained the top UK importer, with the US the second most important import source • Though the majority of the UK’s imports come from developed markets, China has become the 3rd most important source as UK companies have looked to lower production costs Rank Country 2009 (£m) 2016 (£m) Compound Annual Growth Rate % of Top 15 Exporters Value 1 Germany 39,863 63,927 6.1% 19% 2 United States 31,042 40,177 3.3% 12% 3 China 22,875 35,783 5.8% 10% 4 Netherlands 21,944 34,432 5.8% 10% 5 France 20,502 24,691 2.4% 7% 6 Belgium 14,896 23,382 5.8% 7% 7 Switzerland 12,455 21,880 7.3% 6% 8 Italy 12,323 17,268 4.3% 5% 9 Spain 9,277 16,008 7.1% 5% 10 Norway 15,085 13,450 -1.4% 4% 11 Irish Republic 12,265 13,124 0.8% 4% 12 Canada 8,318 10,969 3.5% 3% 13 Hong Kong 9,895 9,788 -0.1% 3% 14 Japan 7,250 9,394 3.3% 3% 15 Turkey 4,317 9,223 10.0% 3% Total 242,307 343,496 4.5% 100% The Top 15 UK Importers in 2016¹ Understanding UK Imports UK imports are dominated by Europe, the USA and China. The fastest growth rates over this period have come from Turkey, Switzerland & Spain. 51 1 Source: HM Revenue and Customs, Overseas Trade Statistics, February 2017 Note: the figures in the table represent trade in goods only Supporting UK Exporters
- 52. Top 15 UK Export Markets: Value of Exports 52 Supporting UK Exporters £46.0bn £32.3bn £19.4bn £18.9bn £16.9bn £15.0bn £13.5bn £11.6bn £9.7bn £9.6bn £6.9bn £6.8bn £4.9bn £4.8bn £4.6bn United… Germany France Netherlands Irish… Switzerland China Belgium Italy Spain Hong Kong UAE Saudi Arabia Japan Singapore Source: HM Revenue and Customs, Overseas Trade Statistics, February 2017 Note: the figures in the table represent trade in goods only
- 53. Compound Annual Growth Rate 2009-2016 (%) Canada £4.6bn 2.0% Switzerland £15.0bn 14.5% Japan £4.8bn 4.6% Ireland £16.9bn 1.1% 1 Source: HM Revenue & Customs , Overseas Trade Statistics, February 2017 Data for 2009- 2016 Top 20 Trading Partners Note: the figures in the table represent trade in goods only UK Export Destinations and Growth Sweden £4.6bn 1.3% US £46.0bn 4.0% South Korea £4.4bn 10.3% UK exports1 53 Supporting UK Exporters Turkey £4.6bn 9.3% France £19.4bn 0.9% Spain £9.6bn 0.7% Italy £9.7bn 1.9% Germany £32.3bn 3.3% Belgium £11.6bn 1.2% Saudi Arabia £4.9bn 8.1% Poland £4.2bn 5.7% UAE £6.8bn 6.8% Singapore £4.6bn 6.2% Hong Kong £6.9bn 8.8% China £13.5bn 12.9 % Netherland s £18.9bn 0.6%
- 54. Top UK Export Industries 54 Supporting UK Exporters Top UK Export Industries 2016 Growth metric is average compound annual growth rate since 2013 Source: HMRC, Regional Trade Statistics, March 2017 Note: the figures in the table represent trade in goods only Animal and Vegetable Oils, £0.4bn, ↓3.1% Other commodities nes, £5.3bn, ↑5.6% Crude Materials, £5.8bn, ↓4.3% Beverages and Tobacco, £7.1bn, ↓0.5% Food and Live Animals, £13.2bn, ↑3.2% Mineral Fuels £19.1bn, ↓16.6% Manufactured Goods, £26.2bn, ↓4.6% Miscellaneous Manufactures, £41.9bn, ↑4.9% Machinery and Transport, £119.4bn, ↑2.4% Chemicals, £52.5bn, ↑1.4% All: ↓0.3%
- 55. • Key areas of UK Exports to Japan (size): • Consumer goods • Capital goods • Chemicals • Intermediate goods • Machinery & Electrical • Key areas of UK Exports to Japan (growth): • Consumer Goods • Capital Goods • Machinery & Electronics • Transportation • Food products 55 February 2017 Japan and the UK
- 56. Import Trade Loans Export Collections and Letters of CreditImport Collections and Letters of Credit Bonds, Guarantees and Indemnities Bill of Exchange and LC Discounting Pre-shipment Trade Loans Post-shipment Trade LoansStock Finance Receivables FinanceSupplier Finance Avalisation Tender Supply Purchase Production Performance Sales Post sales 56 February 2017 Your business cycle: Barclays can help
- 57. Phil Ball Trade Director M: 07775 542 257 * E: phil .ball2@barclays.com Barclays East Anglia Trade Contact * Please note: this is a mobile phone number and calls will be charged in accordance with your mobile tariff. February 201757 Jeff Evans Regional Trade Director M: 07775 552826 * E: Jeff.Evans@barclayscor p.com
- 58. Disclaimer Barclays offers corporate banking products and services to its clients through Barclays Bank PLC. This presentation has been prepared by Barclays Bank PLC ("Barclays"). This presentation is for discussion purposes only, and shall not constitute any offer to sell or the solicitation of any offer to buy any security, provide any underwriting commitment, or make any offer of financing on the part of Barclays, nor is it intended to give rise to any legal relationship between Barclays and you or any other person, nor is it a recommendation to buy any securities or enter into any transaction or financing. Customers must consult their own regulatory, legal, tax, accounting and other advisers prior to making a determination as to whether to purchase any product, enter into any transaction of financing or invest in any securities to which this presentation relates. Any pricing in this presentation is indicative. Although the statements of fact in this presentation have been obtained from and are based upon sources that Barclays believes to be reliable, Barclays does not guarantee their accuracy or completeness. All opinions and estimates included in this presentation constitute the Barclays’ judgment as of the date of this presentation and are subject to change without notice. Any modelling or backtesting data contained in this presentation is not intended to be a statement as to future performance. Past performance is no guarantee of future returns. No representation is made by Barclays as to the reasonableness of the assumptions made within or the accuracy or completeness of any models contained herein. Neither Barclays, nor any officer or employee thereof, accepts any liability whatsoever for any direct or consequential losses arising from any use of this presentation or the information contained herein, or out of the use of or reliance on any information or data set out herein. Barclays and its respective officers, directors, partners and employees, including persons involved in the preparation or issuance of this presentation, may from time to time act as manager, co-manager or underwriter of a public offering or otherwise deal in, hold or act as market-makers or advisers, brokers or commercial and/or investment bankers in relation to any securities or related derivatives which are identical or similar to any securities or derivatives referred to in this presentation. Copyright in this presentation is owned by Barclays (© Barclays Bank PLC, 2017). No part of this presentation may be reproduced in any manner without the prior written permission of Barclays. Barclays Bank PLC is a member of the London Stock Exchange. Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No. 122702). Registered in England. Registered number is 1026167 with registered office at 1 Churchill Place, London E14 5HP.
- 59. 59 Presentation title - edit in the Master slide Julie Austin International Trade Manager Tweet us @Norfolkchamber @Norfolkexport
- 60. 60 Presentation title - edit in the Master slide Export Documentation ATA Carnet Translations Training Courses Tweet us @Norfolkchamber @Norfolkexport
- 61. 61 Presentation title - edit in the Master slide For more information or any assistance with exporting to Japan or any other country please contact the International Trade Team at Norfolk Chamber on: Tel: 01603 729715 E-mail: export@norfolkchamber.co.uk Tweet us @Norfolkchamber @Norfolkexport
- 62. 62 Presentation title - edit in the Master slide Any Questions? Tweet us @Norfolkchamber @Norfolkexport Sponsored by:
- 63. 63 Presentation title - edit in the Master slide Thank you for attending Tweet us @Norfolkchamber @Norfolkexport Sponsored by: